Guangdong Qtone Education will invest CNY53.267 million to acquire a 71.75% stake in Hangzhou Sixun Technology Development Company Limited, an educational technology company.
Of the total funding, CNY41.76 million will be used to acquire a 56.25% stake from Shi Dongying; CNY9.28 million will be used to acquire a 12.5% from Lou Hongyu; and CNY2.227 million will be used to acquire a 3% stake from Jiang Huaqing.
On the completion of the transaction, Qtone Education will hold a combined 71.75% stake in Hangzhou Sixun, making the latter its subsidiary. With the acquisition, Qtone Education's education information service business scale and user group will be further expanded and the company's education information services and profitability in Zhejiang is expected to be improved.
Hangzhou Sixun focuses on the research and development, promotion, and operation of information service products for intercommunications between families and schools. The company also develops and makes related smart card terminal devices. By December 2014, Hangzhou Sixun's businesses had reached nine cities in Zhejiang province, serving over 900,000 users in 719 schools.